HONOURABLE SRI JUSTICE B. VIJAYSEN REDDY WRIT PETITION No.28479 OF 2025 ORDER : (ORAL)

This writ petition is filed seeking a Mandamus to declare the action of respondent Nos.2 to 4 in not considering the petitioner’s representations dated 13.09.2024 and 15.07.2025, for rectification of erroneous assessment of property tax relating to his shops i.e., (a) for removal of tax on vacant shop No.5-8-599/D, (b) for proper re- measurement and market value fixation of shop Nos. 5-8-599/D/2 to 4 at ‘Ratan Mall Shopping Complex’ situated at Chadarghat High Schol Lane, Abids, Hyderabad, and (c) for waiver of penalty and interest, as illegal, arbitrary and violative of Articles 14, 265 and 300-A of the Constitution of India and the provisions of the Greater Hyderabad Municipal Corporation Act, 1955 (for short, ‘GHMC Act’).

2. Petitioner claims to be the owner and possessor of eight mulgies bearing Unit Nos. FF-1, FF-2, FF-39 to FF-44 (Municipal Nos. 5-8-599/D & 5-8-599/D/1 to 5-8-599/D/7) on the first floor, admeasuring 3370 square feet (including common area and parking @ 20%) with 121.78 square yards undivided share of land out of 2744 square yards, in the commercial complex by name ‘Ratan Mall Shopping Complex’ situated at Chadarghat High School Lane, Abids, Hyderabad. The name of the petitioner was mutated in municipal records and he had paid property tax regularly upto 2015. That without following the provisions of the GHMC Act, the GHMC authorities have arbitrarily calculated the property tax for four shops by inflating the tax manifold without any basis.

3. Heard Mr. Katika Ravinder Reddy, learned counsel for the petitioner, and Mr. Midde Arun Kumar, learned Standing Counsel for GHMC, appearing for respondent Nos.2 to 4, and perused the material available on record.

4. Learned counsel for the petitioner submitted that the actual built up area of Shop No.5-8-599/D/4 is 265 square feet, but the GHMC has wrongly recorded the area as 1155 square feet, thus there is error committed by the GHMC in taking measurements of the property. The action of the respondent authority is contrary to Section 213 of the GHMC Act, which mandates that the GHMC shall maintain an Assessment Book containing accurate particulars of assessed property showing its extent, use and rental value. It is further submitted that shop bearing No.5-8-599/D was closed and is lying vacant and as per Section 220 (2) of the GHMC Act, remission of tax is permissible whenever property is vacant or unproductive. The respondent authorities have arbitrarily imposed penalty and interest on the so- called arrears without proper assessment of the subject shops. In case of enhancement of property tax, the respondent authorities are bound to issue prior notice under Section 220 (1) of the GHMC Act and give an opportunity of hearing to the assessee. Moreover, under Sections 197 and 198 of the GHMC Act, the property tax has to be decided on rational yardsticks, such as on the basis of annual rental value or unit area value, which is not done in the instant case. Thus, the action of the respondent authorities is arbitrary and violative of Article 300A of the Constitution of India.

5. Learned Standing Counsel for respondent Nos.2 to 4 furnished copy of parawise remarks. Learned Standing Counsel submitted that during the property tax collection, special drive official of GHMC visited the property bearing H.Nos.5-8-599/D/2 to 4 and it was noticed that there are huge property tax dues in respect of the said door numbers, the details of which are extracted hereunder:

“H.No.5-8-599/D/2, PTIN-1080512075, Tax Due till date –

Rs.3,55,874.

H.No.5-8-599/D/3, PTIN-1080512076, Tax Due till date –

Rs.3,75,414.

H.No.5-8-599/D/4, PTIN-1080512077, Tax Due till date –

Rs.15,87,268.”

It is stated that from the year 2012-13 to 2025-26 i.e., for about

13 years, the petitioner did not pay any property tax. He defaulted in paying current tax and arrears of tax. Several times, demand notices were issued to the petitioner,